The American government, an unexpected crypto investor? At the start of 2024, he holds more than $8 billion in Bitcoin. A surprising strategy, revealing an upward trend in Bitcoin and a crypto seizure policy active for 10 years.
Bitcoin, an unexpected treasure for the United States
Bitcoin’s bullish rally brings exciting news for crypto holders. Its rising price, the almost certain approval of a spot ETF, and the massive accumulation of large investors, mark the 15th anniversary of the flagship crypto.
The American government, thanks to this increase, sees the value of its Bitcoins held increase from 5 billion to $8.3 billion in less than three months. This gain is surprising, especially when we consider the past. Between 2020 and 2022, authorities seized 207,189 Bitcoins linked to Silk Road, its hacker Jimmy Zhong, and Bitfinex hackers. Less than 5% of these Bitcoins were sold, bringing in $215 million, a pittance compared to today’s value.
This spectacular increase highlights a paradigm shift. Once skeptical, the US government now indeed seems recognize the potential of Bitcoin. This development could thus mark a turning point in the perception and use of cryptos by government institutions.
The United States, leader in the field of crypto?
The US government’s early sales strategy raises questions. Last July, the Department of Justice transferred 8,200 BTC, worth $252 million at the time, to Coinbase. However, it is not confirmed if any transactions took place. If we count these transactions, the US government would have generated $640 million by seizing and selling Bitcoins over the last decade.
However, if the government had chosen to keep all of its seized Bitcoins, it could have own around 400,000 BTC, almost double its current stock. It could have been worth $17.4 billion now. Compared to other nations, Uncle Sam may have the largest government Bitcoin reserve in the world, surpassing El Salvador, Ukraine, Bhutan, Venezuela and Finland, which together hold just 4,000 BTC.
This substantial reservation thus places the United States in a potential leading position in the field of cryptos on the global stage. All of this raises questions about the superpowers’ future approach to crypto.
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